Business EnvironmentTopic:- Using Plastic Money :

Not suitable for Indian mindsets.

By:- Vaibhav Jain

Gurpreet Singh

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What is plastic money ?The "plastic" portion of this term refers to

the plastic construction of credit cards, as opposed to paper and metal of currency.

The "money" portion is an erroneous reference to credit cards as a form of money, which they are not.

Vaibhav jain

Using Plastic Money :Not suitable for Indian mindsetsIntroduction :•Plastic money or polymer money, made out of plastic, is a new and easier way of paying for goods and services.

•It includes debit cards, ATMs, smart cards, etc.

Vaibhav jain

BIRTH OF PLASTIC MONEYCredit cards were invented 60 years back.

After the Second World War, the first plastic charge card was invented.

The Diners’ Club card, Introduced in New York City in 1950, the card allowed Diners’ Club members to eat at 27 restaurants in New York City on credit.

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Types of plastic money :Credit cardsDebit cardsMaster cards & VisaCharge cardsSmart cardsPhoto cardsCo-branded cardsGlobal cardsDiners Club cards

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Credit CardsA credit card is plastic money that is used to pay for

the products and services at over 20 millions locations around the world. All you need to do is to produce a card and sign a charge slip to pay for your purchases.

Vaibhav jain

Debit Card

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Master cards & VisaMasterCard and Visa are global non-profit

organizations dedicated to promote the growth of the card business across the world.

Vaibhav jain

Vaibhav jain

Charge cardsA charge card carries all the features of credit

cards. However, after using a charge card you will have to pay off the entire amount billed, by the due date . If you fail to do so, you are likely to be considered a defaulter and will usually have to pay up a steep late payment charge.

Vaibhav jain

Smart cardsA plastic card containing a computer chip and

enabling the holder to purchase goods and services, enter restricted areas, access medical, financial, or other records, or perform other operations requiring data stored on the chip. Smart card is currently introduced by BRTS which stands for Bus Rapid Transit Services in Gujarat in India.

Vaibhav jain

Photo cards

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Co-branded cardsCo-branded cards are credit cards issued

by card companies that have tied up with a popular brand for the purpose of offering certain exclusive benefits to the consumer.

Vaibhav jain

Global cards

Global cards allow you the flexibility and convenience of using a credit card rather than cash or travellers checks while travelling abroad for either business or personal reasons.

Vaibhav jain

Diners Club cardDiners Club is a branded charge card. There are

a wide variety of special privileges offered to the Diners Club cardholder. For instance, as a cardholder you can set your own spending limit. Besides, the card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa.

Advantages of Plastic Money :Purchasing PowerTime SavingExtra Safety Credit LimitsA need of emergenciesAdditional features

Gurpreet Singh

Disadvantages of Plastic Money :

Shops using other vendorsLess Global availabilityWorn out Magnetic stripIncreased Debt and High Interest RatesFraudOver Budget

Gurpreet Singh

Comparison with foreign countries.

India is still lacking in terms of :

- Infrastructure

- Networking

- ProfessionalsLack of support from government.Plastic money gets scanned through the tax

scanner due to E-transaction.

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Implementing rules without corruption.

Lower literacy rates compared to other developed and developing countries.

Educating customers.

Language barriers breaking the channel of communication.

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21st Century, its time for Liberalisation, Privatisation and Globalisation.

In banking sector there is a challenge for Indians in terms of coping up with new technologies.

No matter, innovation is the key to success in any organisation but it doesn’t responds the way customers should.

According to Credit Card Management Consultancy, Indian are still averse to credit and there has been no change in mindset.

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People using Plastic money.

Zahabia Africawalahttp://www.europeanjournalofsocialsciences.com

http://www.europeanjournalofsocialsciences.com

Less than 1000009%

100000 to

50000044%

500000 to

1000000

20%

1000000 &

above27%

Income group using plastic money

http://www.europeanjournalofsocialsciences.com

14%

53%

50 to 6023%

9%

Percentage of Age group using plastic money in India.

18 to 3535 to 5050 to 60above 60

http://www.europeanjournalofsocialsciences.com

Conclusion

21st Century banking has become wholly customer-driven &technology driven by challenges of competition, rising customer expectations & shrinking margins, banks have been using technology to reduce cost enhance efficiency, productivity & customer convenience.

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